Grid resilience through intelligent PV and storage
Building on a successful 100 kW residential microgrid, this project aims to demonstrate a larger, industrial-scale smart solar storage microgrid at a steel factory in Butwal, Nepal. By combining state-of-the-art AI technology with an innovative business model, the project showcases that fully green steel production is achievable. It also introduces Gender Equality, Disability and Social Inclusion (GEDSI) principles and Environmental and Social Safeguards (ESS) as part of Nepal’s clean energy transition.
INITIATED
IN PROGRESS
CLOSING
Completed
Smart Energy
Background
Over the past five years, Practical Action, Gham Power, and Swanbarton have collaborated to decarbonise Nepal through smart energy systems. Nepal’s electricity is nearly all from hydropower and other renewables, but frequent power outages due to distribution challenges force reliance on diesel backups, increasing CO₂.
A 100 kW smart microgrid previously deployed at a residential block in Kathmandu successfully demonstrated that fully renewable backup power is feasible for commercial and residential users. This earlier phase also integrated GESI principles, fostering inclusivity.
About 40% of Nepal’s carbon emissions stem from its industrial sector. Extending grid resilience technology to industry can maximise socio-economic development and deliver significant carbon reductions. Gham Power’s extensive solar deployment and Practical Action’s decades of expertise reinforce environmental and social safeguards, accelerating Nepal’s transition to clean, inclusive energy.
Transformational innovation
GRIPS2 will deploy a smart microgrid comprising a 2 MW / 4 MWh battery and 1 MWp of solar PV at the Laxmi Steel Factory. This installation—Nepal’s largest battery-based microgrid—will provide 100% generator-free backup for critical systems.
Swanbarton’s Microgrid Management System (MMS) will enhance the site with smart grid functionality. By optimising battery and PV performance, MMS strengthens the business case for clean energy infrastructure. It ensures reliable power during outages without diesel dependence and is ready for integration with future grid services. The system leverages commercially available components, such as lithium batteries and PV, to maximise asset value and ensure cost-effective, resilient energy delivery.
This robust, replicable design stands as a “lighthouse project” for the industrial sector, demonstrating the viability of smart solar storage microgrids and laying the groundwork for broader deployment across Nepal and South Asia.
Objectives
The project aims to build a larger, industrial-scale smart solar storage microgrid as well as introducing GEDSI, and environmental and social safeguard aspects at the Laxmi Steel Factory.
Scale-up from 100 kW to 2 MW is essential for demonstrating the broader applicability of the smart grid technology developed in GRIPS 1, particularly in driving the clean energy transition within industrial sector by offering a reliable, cost-effective alternative to diesel generators and imported coal-based electricity directly contributing to Nepal’s clean energy goals.
The demonstration project aims to bridge the gap between early-stage projects and large-scale commercial deployments by providing concrete demonstration of the cost-effectiveness, reliability of smart solar and storage systems in an industrial context supporting wider adoption in Nepal and beyond.
The dissemination of outcomes, including lessons learned and best practices, will further promote adoption of smart microgrid technology, GEDSI and ESS strategies within Nepal’s industrial sector, enhancing the resilience of the national grid and supporting broader sustainable development.
Expected impacts
Environmental: The microgrid will cut industrial emissions by displacing diesel, reducing CO₂, and improving local air quality.
Social: The provision of clean, stable energy improves workplace safety and community health. Solar training and safety protocols support workforce development and career advancement.
Economic: Clean energy lowers operational costs and stabilises energy supply. The ESS plan supports sustainability through risk mitigation, monitoring, and CSR activities such as biodiversity conservation, waste management, and community engagement.
Inclusion: The GESI plan supports inclusive employment by assessing workforce dynamics and establishing a policy framework. A dedicated steering committee will oversee implementation, track KPIs, and ensure active community participation – especially for women and marginalised groups.
About the lead organization
Practical Action is an international development organisation with a vision of a world that works better for everyone. Working together with communities and our global partners, Practical Action is developing innovative real-world solutions to build sustainable lives and livelihoods for people living on the frontlines of poverty and climate change. Practical Action is turning surviving into thriving and overcoming injustice, especially for women and vulnerable groups in Africa, Asia and Latin America.
The organization is working closely with local communities, especially women and marginalised individuals, to empower them to unlock their potential and improve their lives, livelihoods, and futures. The natural resources many communities depend on are increasingly under threat, so the development approaches are designed to support both people and the environment.
The organization’s solutions are environmentally friendly, based on renewable resources, and designed for long-term sustainability. Practical Action collaborates with governments, the private sector, and international agencies to replicate and scale impactful programmes globally.
About the project partners
Swanbarton is a UK-based software energy company with over 20 years of expertise in energy storage and smart energy systems. Its Microgrid Management System (MMS) integrates AI to deliver robust, intelligent solutions. Swanbarton is also deploying similar microgrids in the UK maritime sector and in Ukraine to support resilient power in conflict-affected communities.
Gham Power is Nepal’s leading solar developer and is responsible for the installation, integration, and maintenance of the battery storage system. With over 4,000 projects and 10 MW under management, Gham Power brings technical expertise, local capacity-building, and strong networks to scale smart energy solutions across Nepal’s commercial and industrial sector.
Beneficiaries
The primary beneficiary of the project will be the Laxmi Steel Factory in Sunwal and its stakeholders, including the local community and workers. The factory will reduce energy costs and enhance operational stability, leading to greater economic efficiency and a lower carbon footprint. It is expected to save over $1.3 million in electricity and diesel costs while offsetting 2,800 tonnes of CO₂ over 25 years.
The factory employs over 500 workers, whose work quality and safety will improve. Employees will gain enhanced job security through roles in installation, maintenance, and training in renewable energy technologies. Local residents will experience improved air quality and reduced noise pollution, resulting in better public health outcomes. The project will also demonstrate its impact on over 100 similar industries in the area. It supports sustainability by minimising fossil fuel reliance, reducing CO₂ emissions, and improving the local environment. The project will also provides technical training to engineers and solar technicians across Nepal.
The project contributes to several SDGs, including:
SDG 1: No Poverty – Reduces operational costs, increases profitability, and creates new jobs, helping lift people out of poverty.
SDG 5: Gender Equality – Promotes greater participation of women in the solar energy workforce and supports inclusive employment policies.
SDG 6: Clean Water and Sanitation – Supports improved waste management as part of ESS activities.
SDG 8: Decent Work and Economic Growth – Upskills workers and fosters green job creation in clean energy technologies.
SDG 9: Industry, Innovation and Infrastructure – Demonstrates sustainable industrialisation through smart grid technologies and clean energy integration, while fostering knowledge exchange between the UK and Nepal.
SDG 13: Climate Action – Reduces greenhouse gas emissions by replacing diesel with renewable energy and supports grid resilience.
Additional resources
- Practical Action | LinkedIn
- Swanbarton | LinkedIn
- Gham Power | LinkedIn
- https://www.myrepublica.nagariknetwork.com/news/smart-grid-project-grips-aims-to-tackle-nepal-s-power-woes
- https://www.myrepublica.nagariknetwork.com/news/smart-grid-project-grips-aims-to-tackle-nepal-s-power-woes
- https://ghampower.com/our-work/making-grids-reliant-through-intelligent-photovoltaic-storage-system/
Project Key Information
Lead organization
Practical Action
Consortium partners
- Gham Power Private Limited Nepal
- Swanbarton Private Limited UK
Duration
01 Feb 2025 - 01 Mar 2028
Location
Nepal
Thematic area
Smart Energy
Stage
Initiated
Website
Call
1st Call for Proposals
Clean Hydrogen
Critical Minerals
Industrial Decarbonization